Flex Space
New
For Sale
$1,500,000
516 S 1ST Ave, Hillsboro, OR 97123
CommercialSale, Hillsboro, OR
Property Size5,255 SF
Lot Size0.22 Acres
Price / SF$285.44
Days on Market2
Property Features for 516 S 1ST Ave
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
I-G
View
Territorial
Directions
Clipper
Subdivision
_152
Standard status
Active
APN
R1322973
Size
5,255 SF
Lot size
0.22 Acres
Taxes and HOA fees
Tax Description
SIMMONS ADD TO HILLSBORO, LOT PTS 4-6
Tax Annual Amount
3076
Legal Description
SIMMONS ADD TO HILLSBORO, LOT PTS 4-6
Building Details
Year built
1975
Floors in Building
2
Building materials
Block
Roof type
Membrane
Listing Agency:
All Professionals Real Estate
(503) 259-2100
Listed By:
Eric Squires · License #201102006
(503) 807-3899
Added: Sep 23
Last Checked: Sep 24 at 9:06AM
MLS# 613404324
Copyright © 2026 Regional Multiple Listing Services. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 5,255-square-foot flex property at 516 S 1st Ave includes a block-built structure completed in 1975, with a membrane roof and approximately 0.22 acres of land. The I-G zoning supports industrial, office, and flex-space uses, with the property suited to both owner-user occupancy and multi-tenant operations.
The building is positioned near downtown Hillsboro, major arterial routes, and TriMet access. Its combination of flexible zoning, established construction, and accessible Hillsboro setting provides a practical base for a range of commercial users.
The building is positioned near downtown Hillsboro, major arterial routes, and TriMet access. Its combination of flexible zoning, established construction, and accessible Hillsboro setting provides a practical base for a range of commercial users.
Key Highlights
- 5,255‑square‑foot flex property on approximately 0.22 acres
- I‑G zoning supports industrial, office, and flex‑space uses
- Block construction completed in 1975
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$54,228
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.62%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,084,560
$1.1M
Cap Rate 7%
$774,686
$774.7K
Cap Rate 9%
$602,533
$602.5K
Market Conditions
NOI Build-Up for 5,255 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$82.0K $15.60/SF
− Vacancy
−$4.5K −$0.86/SF
EGI
$77.5K $14.74/SF
− OpEx
−$23.2K −$4.42/SF
NOI
$54.2K $10.32/SF
Area
Hillsboro, OR
Vacancy
5.50%
Lease Rate
$15.60 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,084,560
Cap Rate 7%
$774,686
Cap Rate 9%
$602,533
Alternative Uses
Best Use
Industrial
$774.7K
$677.9K – $903.8K
NOI $54,228 @ 7.0% cap · market cap 3.62%
Second Best
Flex RnD
$766.5K
$670.7K – $894.3K
NOI $53,655 @ 7.0% cap · market cap 3.58%
Theoretical Best
Office A
$1.41M
$1.23M – $1.65M
NOI $98,781 @ 7.0% cap · market cap 6.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,838
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97123, OR
48,369
Population
17,685
Households
2.7
Avg Household Size
37
Median Age
36%
College-Educated
87%
High-School Grad
55.7 sq mi
ZIP Area
868
Density / Sq Mi
$105,999
Median Household Income
$50,578
Median Earnings
$1,814
Median Rent
$489,100
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in West region
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Frequently Asked Questions
What type of property is this?
Flex space - I-G zoning accommodates industrial, office, and flexible commercial applications.
Where is this flex space located?
The property is located at 516 S 1ST Ave Hillsboro, OR.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: 5,255‑square‑foot flex property on approximately 0.22 acres; I‑G zoning supports industrial, office, and flex‑space uses; Block construction completed in 1975
